Mortgage rates moved moderately higher today after not taking a hopeful move in bond markets yesterday. Bonds – and mortgage-backed bonds in particular – are, and were, directly responsible for most of the day-to-day movement in mortgage rates to lose Floor all year round.
As for several days in the past few weeks, a promising upswing in the bond market was recorded yesterday. This creates some hope these prices had found theirs ceiling when they reached their highest values for more than a year 3 weeks ago. However, after today’s moderate increase, they are dangerously close to these highs.
By early February, we had been around for nearly 2.5 months at an average fixed rate of 30 years 2.75% for first class, conventional refis (2.625% or less for purchases). Today that rate is in the 3.375% -3.5% Range for refinancing and 3.25-3.375% for purchases. This makes it one of the few trains of this size for decades.